Airlines Information March 2008

Continental Airlines, Delta Air Lines and United Airlines during fourth-quarter 2007 earnings calls said they have reinstated the Saturday-night stay requirements in select markets.

In fare analysis conducted for Business Travel News, Harrell Associates found the six legacy carriers placed Saturday-night stay restrictions on 4 percent of the 2,813 one way or roundtrip fares evaluated in late January in each carrier’s top 40 routes.

That is slightly up from the 3 percent of restrictions found for the same carriers in the same markets last September. However, the most recent data from Harrell shows that of 763 roundtrip fares evaluated, 13 percent carried Saturday-night stay restrictions.

Robert Mann, President of airline consulting firm R.W. Mann & Co., said the restrictions are “the sort of thing that will, without changing prices, fence business travelers into the higher fare categories—it will also tick them off, but that’s a separate issue.” Not all legacy carriers have joined the Saturday-night stay reintroduction. “We have not done that anywhere yet and frankly don’t see that happening across the industry,” US Airways CEO Doug Parker said in the carrier’s earnings call last month.

AirTran’s reservations system will be capable of handling code share flights within a few months, opening up the possibility that the carrier could take on code-share partners for the first time, said AirTran CEO Robert Fornaro.
American parent AMR Corp. next year plans to divest American Eagle, its regional subsidiary, with a spin-off to AMR shareholders, a sale to a third party or some other form of separation.American Eagle operates about 1,700 daily flights with about 300 aircraft and will generate about $2.3 billion in revenue this year.

AMR said the move would enable American to focus on its mainline business while allowing American Eagle to pursue growth opportunities.

Continental signed up with JetBlue subsidiary LiveTV to bring seatback TV viewing to Continental´s domestic passengers on certain aircraft.In addition, the carrier will introduce Live TV’s in-flight Wi-Fi connectivity for e-mail and instant messaging. Continental expects to charge a $6 access fee in economy.
In January, JetBlue Airways debuted refundable fares, allowing purchasers to change reservations, including passenger name, or receive a full refund for cancellations prior to departures.It said refundable fare pricing would depend on haul length, but would be $50 to $100 higher than its highest nonrefundable fare.
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